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22-0503_ORANGE COUNTY STRIPING SERVICE INC_Agenda Report_E8City of San Juan Capistrano Agenda Report TO: Honorable Mayor and Members of the City Council FROM: Benjamin Siegel, City Manager SUBMITTED BY: Thomas Toman, Public Works Director PREPARED BY: Jill Thomas, Senior Management Analyst DATE: May 3, 2022 SUBJECT: Resolution Waiving the Formal Request for Proposals (RFP) or Request for Qualifications (RFQ) Process, and Approval of Amendment No. 1 to the Maintenance Services Agreement for Pavement Marking Maintenance Services (Orange County Striping Service, Inc.) RECOMMENDATION: 1.Adopt a resolution waiving the formal RFP/RFQ process; and, 2.Approve and authorize the City Manager to execute Amendment No. 1 to the Maintenance Services Agreement with Orange County Striping Service, Inc. for pavement marking maintenance services at current unit pricing for an additional one- year term beginning July 1, 2022, and ending June 30, 2023. EXECUTIVE SUMMARY: The current agreement for pavement marking maintenance services with Orange County Striping Services, Inc. (OCSS) expires on June 30, 2022 (Attachment 1). OCSS has offered to continue providing services to the City for an additional one-year term with no change to current pricing (Attachment 2). Staff is requesting an exception to the formal Request for Proposal/Request for Qualification (RFP/RFQ) procurement process. To approve this exception, the City Council would need to adopt the attached resolution (Attachment 3) waiving the formal RFP/RFQ procurement process. It is also recommended that the City Council authorize the City Manager to execute Amendment 5/3/2022 E8 City Council Agenda Report May 3, 2022 Page 2 of 3 No. 1 to the Maintenance Services Agreement (MSA) with OCCS for a term of one year beginning July 1, 2022, and ending June 30, 2023 (Attachment 4). All other terms of the MSA would remain in effect. OCCS has provided exceptional service to the City for over 10 years. They have been very responsive to City needs and provide quality work on a consistent basis. OCSS has offered to enter into a contract amendment under the same terms and fees as the prior year. Due to the current high rate of inflation and economic instability, a formal RFP/RFQ process would likely result in higher fees and diminished services to execute projects in a timely manner. Therefore, it is recommended that a contract amendment be approved without a formal RFP/RFQ process under the exceptions provided for in Municipal Code Section 3-4.306(e)(3), which allows for an exception where the process is deemed not to be the most cost-effective approach. FISCAL IMPACT: The City expends approximately $85,000 annually for pavement marking maintenance. There is sufficient funding in the proposed Fiscal Year 2022-2023 Operating Budget to cover these operations. No increase in unit pricing would result from this action. ENVIRONMENTAL IMPACT: In accordance with the California Environmental Quality Act (CEQA), the recommended actions are exempt from CEQA per Section 15061(b)(3), the general rule that the CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Adopting a resolution waiving the formal RFP/RFQ process and approving and authorizing the City Manager to execute an Amendment for a one-year term extension for pavement marking maintenance services would not be an activity with potential to cause significant effect on the environment and therefore is exempt from CEQA. PRIOR CITY COUNCIL REVIEW: On September 5, 2017, the City Council authorized the City Manager to execute a Maintenance Services Agreement with Orange County Striping Service, Inc. for pavement marking maintenance services. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: This action does not require commission, committee, or board review. City Council Agenda Report May 3, 2022 Page 3 of 3 NOTIFICATION: Orange County Striping Service, Inc. ATTACHMENT(S): Attachment 1: Maintenance Service Agreement – September 5, 2017 Attachment 2: Orange County Striping Service, Inc. – Extension Request Letter Attachment 3: Proposed Resolution Attachment 4: Proposed Amendment No. 1 MSA - Orange County Striping Service, Inc. ATTACHMENT 1, PAGE 1 OF 27 ATTACHMENT 1, PAGE 2 OF 27 ATTACHMENT 1, PAGE 3 OF 27 ATTACHMENT 1, PAGE 4 OF 27 ATTACHMENT 1, PAGE 5 OF 27 ATTACHMENT 1, PAGE 6 OF 27 ATTACHMENT 1, PAGE 7 OF 27 ATTACHMENT 1, PAGE 8 OF 27 ATTACHMENT 1, PAGE 9 OF 27 ATTACHMENT 1, PAGE 10 OF 27 ATTACHMENT 1, PAGE 11 OF 27 ATTACHMENT 1, PAGE 12 OF 27 ATTACHMENT 1, PAGE 13 OF 27 ATTACHMENT 1, PAGE 14 OF 27 ATTACHMENT 1, PAGE 15 OF 27 ATTACHMENT 1, PAGE 16 OF 27 ATTACHMENT 1, PAGE 17 OF 27 ATTACHMENT 1, PAGE 18 OF 27 ATTACHMENT 1, PAGE 19 OF 27 ATTACHMENT 1, PAGE 20 OF 27 ATTACHMENT 1, PAGE 21 OF 27 ATTACHMENT 1, PAGE 22 OF 27 ATTACHMENT 1, PAGE 23 OF 27 ATTACHMENT 1, PAGE 24 OF 27 ATTACHMENT 1, PAGE 25 OF 27 ATTACHMENT 1, PAGE 26 OF 27 ATTACHMENT 1, PAGE 27 OF 27 ATTACHMENT 2, PAGE 1 OF 1 ATTACHMENT 3, Page 1 of 2 RESOLUTION NO. 22-05-03-XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO WAIVE THE FORMAL REQUEST FOR PROPOSAL/REQUEST FOR QUALIFICATION (RFP/RFQ) PROCESS AS A NON-COST-EFFECTIVE APPROACH, AND AUTHORIZING STAFF TO PROCEED WITH AN AMENDMENT TO THE EXISTING MAINTENANCE SERVICES AGREEMENT WITH ORANGE COUNTY STRIPING SERVICE, INC., FOR PAVMENT MARKING MAINTENANCE SERVICES. WHEREAS, the City entered into a Maintenance Services Agreement with Orange County Striping Service, Inc., for pavement marking maintenance September 5, 2017 (“Agreement”); and WHEREAS, the Agreement is presently set to expire on June 30, 2022, and WHEREAS, the City wishes to extend the term of the Agreement to June 30, 2023, and WHEREAS, the maintenance of pavement markings in City streets and public right-of way must occur to maintain the health and welfare of the public while reducing risks associated with vehicular traffic and pedestrian mobility, and WHEREAS, Section 3-4.304 of the San Juan Capistrano Municipal Code provides that maintenance services contracts over $25,000 are subject to a formal RFP/RFQ bid process; and WHEREAS, Section 3-4.306(e)(3) of the San Juan Capistrano Municipal Code provides an exception to the formal RFP/RFQ process where the process is deemed not to be the most cost-effective approach; and WHEREAS, undergoing a formal RFP/RFQ process for pavement marking maintenance and services would not be the most cost-effective approach given the current high rate of inflation economic instability; and WHEREAS, Orange County Striping Service, Inc., is familiar with the City’s needs, has indicated that it will hold existing pricing; has demonstrated its flexibility to meet the City’s service requirements; has historically provided excellent service to the City; has an understanding of the requirements of the Authority; and can immediately begin performing services without any substantive ramp up time. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, HEREBY RESOLVES, FINDS AND DETERMINES AS FOLLOWS: ATTACHMENT 3, Page 2 of 2 1. That the foregoing recitals are true and correct and incorporated herein by this reference. 2. That undergoing a formal RFP/RFQ process at this time for pavement marking maintenance services would not be the most cost-effective approach. . 3. That Amendment No. 1 to the Agreement extending the term of the Agreement is hereby approved. 4. That the City Manager or his designee is hereby authorized to execute Amendment No. 1 to the Agreement. PASSED, APPROVED, and ADOPTED is 3rd Day of May, 2022. ________________________ Derek Reeve, Mayor ____________________________ Maria Morris, City Clerk